OREANDA-NEWS. November 05, 2013. BHP Billiton and the Navajo Transitional Energy Company (NTEC) have signed the final agreements for NTEC’s purchase of Navajo Mine.

New Mexico Coal Asset President Pat Risner, said: “BHP Billiton is pleased to have worked with the Navajo Nation to secure the future of the mine and the benefits it provides to the Navajo Nation, employees, communities, and other stakeholders.”

The next milestone for this transaction will be approvals by the owners of the Four Corners Power Plant (FCPP) by the end of November 2013. Following these approvals, the new Coal Supply Agreements covering to 2031 will be executed and ownership will be transferred to NTEC on 1 December 2013.

“BHP Billiton will remain as the manager and operator of Navajo Mine through to 2016 on behalf of NTEC. The mine will continue to be a significant contributor to the Navajo Nation’s and the Four Corners region’s economic base,” Mr Risner said.

The successful completion of the transaction will extend the life of the Navajo Mine and the FCPP for an additional 15 years to beyond 2015. This will deliver many benefits to stakeholders including:

Continued direct employment of 800 people at the mine and power plant, generating a revenue stream that constitutes over 30 per cent of the Navajo Nation’s general fund.

According to a recent study by Arizona State University, it will generate 2,069 direct and indirect jobs and result in an economic contribution of USD 372 million eachyear in San Juan County for the period of 2016 to 2031.

This represents a total economic contribution over the period of over USD 5.5 billion.

Navajo Mine and its approximately 430 employees, 85 per cent of whom are Native American, have enjoyed 50 years of supplying fuel to the Four Corners Power Plant.